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VaxGen Files Last Outstanding Periodic Report With SEC
Date:10/4/2007

Plans to Initiate Process to Re-list Common Shares

SOUTH SAN FRANCISCO, Calif., Oct. 4 /PRNewswire-FirstCall/ -- VaxGen, Inc. (Pink Sheets: VXGN) announced today that it has filed its Form 10-Q for the quarter ended June 30, 2007, thereby bringing the company current on its financial reporting obligations with the U.S. Securities and Exchange Commission (SEC).

(Logo: http://www.newscom.com/cgi-bin/prnh/19991112/VAXGENLOGO)

Accordingly, the company initiated plans to re-list its common stock on a nationally recognized stock exchange. "We believe VaxGen and its stockholders will benefit from having the company's stock trade on the most liquid and transparent market available to the company," said Matthew Pfeffer, VaxGen's Chief Financial Officer. "We intend to aggressively pursue that goal and to re-list our stock as soon as possible."

"This filing represents an important milestone for VaxGen," said James P. Panek, VaxGen's President and Chief Executive. "I want to congratulate Matt and his team for their extraordinary diligence under very challenging conditions. Since becoming CFO in the spring of 2006, Matt has consistently met internal expectations for completing the filing of our outstanding periodic reports. I am pleased with this development because I believe that having current financial statements and a listing on a well recognized stock exchange will enhance our ability to complete a strategic transaction."

About VaxGen

VaxGen is a biopharmaceutical company based in South San Francisco, California. For more information, please visit the company's web site at http://www.vaxgen.com.

Note: This press release contains "forward-looking statements" within the meaning of the federal securities laws. These forward-looking statements include without limitation, statements regarding the company's application for listing of its common stock. These statements are subject to risks and uncertainties that could cause actual results and events to differ materially from those anticipated. Reference should be made to the company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2007 under the heading "Risk Factors" for a more detailed description of such risks. Readers are cautioned not to place undue reliance on these forward-looking statements that speak only as of the date of this release. VaxGen undertakes no obligation to update publicly any forward-looking statements to reflect new information, events, or circumstances after the date of this release except as required by law.


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SOURCE VaxGen, Inc.
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